"Today we are announcing that, after extensive discussions, the board and Gregg Steinhafel have decided that now is the right time for new leadership at Target. Effective immediately, Gregg will step down from his positions as chairman of the Target board of directors, president and CEO," said Target in a statement on their website.
The resignation comes five months after a security breach that occurred during the height of the holiday shopping season.
Steinhafel is a 35-year veteran of Target and led the response to the breach. In a letter to the Target board of directors, he said, "The last several months have tested Target in unprecedented ways. From the beginning, I have been committed to ensuring Target emerges from the data breach a better company, more focused on delivering for our guests."
Target CFO John Mulligan will serve as interim president and CEO and board member Roxanne Austin will serve as interim chair. Steinhafel will stay as an adviser during the transition and will receive severance pay according to an SEC filing.
Target shares were down $1.70, or 2.79 percent, to $60.29 shortly after 10 a.m. Monday morning.